How to Build Profitable Lawn Care Business Margins?

Running a lawn care business can be both rewarding and highly profitable if you know how to manage your margins. From setting the right lawn care pricing strategy to controlling business operating costs, understanding your numbers is essential for long-term success. 

Lawn care businesses that monitor their bottom line closely are better positioned to grow sustainably.

In this guide, we’ll explore:

• The average lawn care profit margins
• How to calculate lawn care and landscaping profit margins
• What profit margins should look like for a landscaping company
• Proven strategies to increase your bottom line as a professional landscaping contractor
• Profitable services that boost income
• How to keep margins on track for the future

What is the average profit margin for a landscaping business?

According to Investopedia, the profitability of a good or service also depends on competition, market research, and customer demand.

Industry data shows that the average lawn care profit margin ranges from 10% to 45%, depending on the type of products and services offered, customer base, and level of efficiency. 

For basic residential mowing, margins may be closer to 10–20%. For commercial landscaping services that include design, hardscaping, or seasonal maintenance, profit margins can climb toward the higher end of 40%.

How do I calculate lawn care and landscaping profit margins?

Calculating lawn care business profitability requires a simple formula:

Profit Margin = (Net Profit ÷ Revenue) × 100

Follow these steps:

1. Calculate your gross profit

Subtract direct costs from your total revenue. If you bring in $200,000 annually and spend $60,000 on direct labor and equipment (e.g., lawn mowers, gardening tools), your gross profit is $140,000.

2. Identify operating expenses

Operating costs include advertising, fuel, insurance, and office overhead costs. Suppose these total $80,000. Recording these in a spreadsheet or software helps keep track of receipts and expenses.

3. Calculate net profit

Gross Profit ($140,000) – Operating Expenses ($80,000) = Net Profit $60,000.

4. Calculate profit margin

Net Profit ÷ Revenue ($60,000 ÷ $200,000) × 100 = 30% Profit Margin.

Pro Tip: Use our Profit Margin Calculator or Lawn Care Cost Calculator for accurate results.

What should my lawn care and landscaping profit margins be?

Healthy margins depend on your service mix. Small lawn care companies focusing on mowing may see 10–20% margins, while larger landscaping companies that cover gardening, design, and long-term contracts may achieve 30–45%. 

Using charts or toggling the table of contents in business guides can help small business owners explore benchmarks.

Keeping track in accounting software ensures you don’t overlook expenses. Learn more by reading Lawn Care Pricing Chart: Your Guide to Fair Lawn Service Costs and Lawn Mowing Service Rates: How to Price Your Work in 2025.

8 ways to increase lawn care and landscaping profits

1. Raise your prices

Don’t undersell your product or service. A strong pricing strategy ensures you cover operating costs and maintain a healthy margin. High quality services allow you to justify rates, and customer satisfaction improves when value is clearly communicated.

2. Reduce overhead costs

Review expenses like fuel, advertising, and leases. Switching to efficient equipment, such as modern lawn mowers, can cut operating costs significantly.

3. Make your team more efficient

A clear schedule, training, and performance tracking reduce wasted time. A landscaping company can improve productivity with digital tools and better labor management.

4. Bring in more clients

Marketing campaigns, social media, and referrals expand your customer base. Conducting market research helps identify high-value goods and services to offer.

5. Establish value-based pricing

Rather than charging only by the hour, bill based on value. For example, premium gardening packages are a good or service customers will pay more for because they save time and add beauty.

6. Invest in training and labor management

Professional training improves safety and efficiency. Customer service also benefits, boosting repeat business and customer satisfaction.

7. Implement software and automation tools

Scheduling apps, spreadsheets, and estimating software save time and reduce mistakes. Try Invoice Fly’s Estimates App to send professional estimates for goods and services.

8. Target high-value customers

Commercial contracts and estate maintenance typically yield higher profit margins than single small residential jobs. High quality, consistent service builds trust with commercial clients.

For more strategies, check out Average Lawn Care Salary Guide in 2025 and How To Get Your Lawn Care License.

What are some profitable landscaping services?

1. Mulching

Low-cost materials and high perceived value make mulching a profitable add-on product or service.

2. Flower Bed Maintenance

Ongoing seasonal gardening work ensures consistent income.

3. Lawn Clean Up

Spring and fall clean-ups are high-demand goods and services priced at a premium.

4. Leaf Removal

Seasonal service that’s labor-intensive but profitable with efficient equipment.

5. Pruning

Essential for property upkeep, often combined with other products and services for higher revenue.

Is a lawn care business profitable?

Yes, if managed carefully. Average lawn care income varies, but small businesses typically earn between $50,000 and $100,000 each year. Once a company expands with multiple crews, secures commercial contracts, and invests in consistent marketing, total revenue and profit margins can grow significantly. 

According to Jobber Academy, the most successful lawn care businesses are those that consistently monitor their overhead costs and apply a clear pricing strategy to protect their bottom line.

To stay profitable, consider these ideas:

• Focus on high quality customer service to improve retention.
• Diversify products and services, adding seasonal offerings like leaf removal or mulching.
• Use market research to target the right customer base.
• Keep operating costs low by investing in efficient equipment.
• Train staff to be more productive and professional.
• Review your pricing strategy regularly to cover rising expenses.
• Expand into commercial contracts for more stable income.

Keeping lawn care profit margins on track

Track finances consistently. Use a spreadsheet, chart, or accounting platform to record revenue and expenses. Keep a schedule for routine equipment maintenance to avoid costly breakdowns. Monitoring operating costs ensures you meet financial obligations and protect your bottom line.

Here are some practical ways to stay on track:

• Review your profit and loss statement monthly to catch trends early.
• Compare actual operating costs against your budgeted figures.
• Set aside a portion of income for unexpected equipment repairs.
• Revisit your pricing strategy at least once a year to cover rising costs.
• Conduct regular customer service surveys to measure satisfaction and retention.
• Use a lawn care cost calculator or software to project margins before adding new services.

Learn more with Lawn Care Insurance: How to Choose the Right Coverage & Save in 2025 and How To Make An Estimate in 5 Simple Steps.

Bringing It All Together

Building a profitable lawn care business requires careful planning, efficiency, and a focus on customer service. By offering high quality products and services, monitoring your overhead costs, and maintaining strong customer satisfaction, you can strengthen your bottom line and achieve long-term landscaping business profitability.

To stay on track, remember to:

• Review your financials monthly to catch issues early.
• Keep operating costs under control with efficient equipment.
• Diversify your products and services to attract a wider customer base.
• Focus on commercial contracts for stable, recurring income.
• Continuously improve customer service to boost retention.

Need an estimating solution to support your small business growth? Try Invoice Fly’s Estimates App — it’s free and helps ensure your pricing strategy supports your profitability goals.

For more details on setup and planning, read our guide on how to start your lawn care business.